Alkermes Plc Reports First Quarter 2018 Financial Results



On April 26, 2018 Alkermes plc (Nasdaq: ALKS) reported financial results for the first quarter of 2018 (Press release, Alkermes, APR 26, 2018, View Source [SID1234525711]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"Our first quarter results were in line with our expectations and reflect the solid growth of our proprietary commercial products and the continued strength of our royalty and manufacturing business," commented James Frates, Chief Financial Officer of Alkermes. "Today, we are updating our financial expectations for 2018, driven primarily by the timing of investments we will make in our commercial organization in preparation for the potential launch of ALKS 5461 in 2019. We remain well positioned to execute on our strategy to drive long-term value through important investments in our development pipeline and the growth of VIVITROL and ARISTADA."

Quarter Ended Mar. 31, 2018 Financial

Total revenues for the quarter were $225.2 million. This compared to $191.8 million for the same period in the prior year, representing an increase of 17%.

·Net loss according to generally accepted accounting principles in the U.S. (GAAP) was $62.5 million for the quarter, or a basic and diluted GAAP net loss per share of $0.40. This compared to GAAP net loss of $68.9 million, or a basic and diluted GAAP net loss per share of $0.45 for the same period in the prior year.

Non-GAAP net loss was $14.2 million for the quarter, or a non-GAAP basic and diluted net loss per share of $0.09. This compared to non-GAAP net loss of $27.9 million, or a non-GAAP basic and diluted net loss per share of $0.18 for the same period in the prior year.

"VIVITROL and ARISTADA continue to demonstrate solid growth year-over-year and we have made significant progress in making these important medicines available to patients. We continue to focus on initiatives to promote broad and seamless access for patients," stated Jim Robinson, President and Chief Operating Officer of Alkermes. "The upcoming potential approval and launch of Aripiprazole Lauroxil NanoCrystal Dispersion (ALNCD), a novel, investigational product designed for initiation onto ARISTADA, is an opportunity to address unmet patient need and expand the ARISTADA product family. Similarly, against the backdrop of new data, funding and policy being implemented to address the opioid epidemic, we have an opportunity to further expand patient access to VIVITROL, increase utilization and drive growth."

Quarter Ended Mar. 31, 2018 Financial Results

Revenues

Net sales of VIVITROL were $62.7 million, compared to $58.5 million for the same period in the prior year, representing an increase of approximately 7%.

Net sales of ARISTADA were $29.2 million, compared to $18.0 million for the same period in the prior year, representing an increase of approximately 62%.

Manufacturing and royalty revenues from RISPERDAL CONSTA, INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA were $68.8 million, compared to $60.0 million for the same period in the prior year.

Manufacturing and royalty revenues from AMPYRA/FAMPYRA(1) were $28.3 million, compared to $29.2 million for the same period in the prior year.

Research and development revenues from the collaboration with Biogen for BIIB098 (formerly ALKS 8700) were $17.5 million.

Costs and Expenses

·Operating expenses were $287.0 million, compared to $262.6 million for the same period in the prior year, primarily reflecting increased investment in the commercialization of VIVITROL and ARISTADA.

Net interest expense during the quarter was $4.0 million and included a $2.3 million charge related to the refinancing of the company’s term loan. The company refinanced its term loan to extend the maturity to 2023 and reduce the interest rate by 0.5%.

"Alkermes is entering the final stages of development for three of our pipeline candidates. The regulatory review of ALKS 5461 is back on track and we continue to prepare for potential approval and launch in 2019. For ALKS 3831, we recently completed enrollment of the ENLIGHTEN-2 pivotal study, with topline data expected in the fourth quarter of 2018. For BIIB098, preparation of the regulatory submission has begun and we are on track to submit the NDA toward year-end," said Richard Pops, Chief Executive Officer of Alkermes. "We are on the threshold of our next phase of growth. Our dedication and determination to bring these important new medicines to patients are steadfast and we look forward to sharing our progress throughout the year."

Recent Events:

· ALKS 5461: New Drug Application (NDA) accepted for filing by U.S. Food and Drug Administration (FDA) for the adjunctive treatment of major depressive disorder (MDD) in patients with inadequate response to standard antidepressant therapy. A target action date of Jan. 31, 2019 was assigned under the Prescription Drug User Fee Act (PDUFA).

· ALKS 3831: Enrollment completed for ENLIGHTEN-2, a six-month weight study compared to olanzapine in patients with stable schizophrenia. Topline results are expected in the fourth quarter of 2018.

· BIIB098: MRI and relapse results from the phase 3 EVOLVE-MS-1 study in patients with relapsing and remitting multiple sclerosis were presented at the 70th annual meeting of the American Academy of Neurology (AAN).

· James (Jim) Robinson appointed to the role of President and Chief Operating Officer of Alkermes. Mr. Robinson’s responsibilities include leading Alkermes’ global Commercial, Operations, Business Development and Human Resources functions.

3

Financial Expectations for 2018

Alkermes is updating its financial expectations for 2018 to reflect the expected timing of potential approval and launch of ALKS 5461 in 2019. The following outlines Alkermes’ updated financial expectations for 2018.

Revenues: The company continues to expect total revenues to range from $975 million to $1.025 billion, driven by continuing growth of VIVITROL and ARISTADA. Included in this total revenue expectation, Alkermes continues to expect VIVITROL net sales to range from $300 million to $330 million, and ARISTADA net sales to range from $140 million to $160 million.

Cost of Goods Manufactured and Sold: The company continues to expect cost of goods manufactured and sold to range from $180 million to $190 million.

Research and Development (R&D) Expenses: The company continues to expect R&D expenses to range from $415 million to $445 million.

Selling, General and Administrative (SG&A) Expenses: The company now expects SG&A expenses to range from $515 million to $545 million, reduced from a previous expectation of $555 million to $585 million. This reduction is driven by the shift into 2019 of certain launch-related expenditures including the hiring of the ALKS 5461 sales force, and share-based compensation expense related to certain company-wide performance-based restricted stock unit awards, which vest upon FDA approval of ALKS 5461.

Amortization of Intangible Assets: The company continues to expect amortization of intangibles to be approximately $65 million.

Net Interest Expense: The company continues to expect net interest expense to be approximately $10 million.

Income Tax Expense: The company continues to expect income tax expense of up to $10 million.

GAAP Net Loss: The company now expects GAAP net loss to range from $210 million to $240 million, or a basic and diluted loss per share of $1.35 to $1.55, based on a weighted average basic and diluted share count of approximately 155 million shares outstanding. This compares to previous expectations of GAAP net loss in the range of $250 million to $280 million, or a basic and diluted loss per share of $1.61 to $1.81,

based on a weighted average basic and diluted share count of approximately 155 million shares outstanding.

Non-GAAP Net Income (Loss): The company now expects non-GAAP results to range from a non-GAAP net loss of $10 million to a non-GAAP net income of $20 million, or a non-GAAP basic and diluted loss per share of $0.06 to a non-GAAP diluted earnings per share of $0.12, based on a weighted average basic share count of approximately 155 million shares outstanding and a weighted average diluted share count of approximately 161 million shares outstanding. This compares to previous expectations of non-GAAP net loss in the range of $5 million to $35 million, or a basic and diluted non-GAAP net loss per share of $0.03 to $0.23, based on a weighted average basic and diluted share count of approximately 155 million shares outstanding

Share-Based Compensation: The company now expects share-based compensation of approximately $120 million, reduced from approximately $140 million. This reflects the anticipated timing of vesting of certain company-wide performance-based restricted stock unit awards, which vest upon FDA approval of ALKS 5

Capital Expenditures: The company continues to expect capital expenditures to range from $80 million to $90 million.

Conference Call

Alkermes will host a conference call and webcast presentation with accompanying slides at 8:30 a.m. ET (1:30 p.m. BST) on Thursday, Apr. 26, 2018, to discuss these financial results and provide an update on the company. The webcast may be accessed on the Investors section of Alkermes’ website at www.alkermes.com. The conference call may be accessed by dialing +1 888 424 8151 for U.S. callers and +1 847 585 4422 for international callers. The conference call ID number is 6037988. In addition, a replay of the conference call will be available from 11:00 a.m. ET (4:00 p.m. BST) on Thursday, Apr. 26, 2018, through 5:00 p.m. ET (10:00 p.m. BST) on Thursday, May 3, 2018, and may be accessed by visiting Alkermes’ website or by dialing +1 888 843 7419 for U.S. callers and +1 630 652 3042 for international callers. The replay access code is 6037988.

Editas Medicine to Host Conference Call Discussing First Quarter 2018 Corporate Update and Results

On April 26, 2018 Editas Medicine, Inc. (NASDAQ:EDIT), a leading genome editing company, reported that it will host a conference call and webcast on Thursday, May 3, 2018, at 5:00 p.m (Press release, Editas Medicine, APR 26, 2018, View Source;p=RssLanding&cat=news&id=2345072 [SID1234525736]). ET to discuss a corporate update and results for the first quarter of 2018.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

To access the call, please dial 844-348-3801 (domestic) or 213-358-0955 (international) and provide the passcode 6079429. A live webcast of the presentation will be available on the Investors & Media section of the Editas website.

Vical Announces News Release and Conference Call Schedule for First Quarter 2018 Financial Results

On April 26, 2018 Vical Incorporated (Nasdaq:VICL) reported that the company will report financial results for the three months ended March 31, 2018, before the opening of trading on Thursday, May 3, and conduct a conference call and webcast to discuss the financial results and provide a company update at noon Eastern Time on Thursday, May 3 (Press release, Vical, APR 26, 2018, View Source [SID1234525758]). The call will be open on a listen-only basis to any interested parties. The company will also provide a business update, including details on development programs in the conference call and webcast.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Conference Call
To listen to the conference call, dial in approximately ten minutes before the scheduled call to (323) 794-2567 (preferred), or (888) 278-8469 (toll-free), and reference confirmation code 1443635. A replay of the call will be available for 48 hours beginning about two hours after the call. To listen to the replay, dial (719) 457-0820 (preferred) or (888) 203-1112 (toll-free) and enter replay passcode 1443635. The call also will be available live and archived through the events page at www.vical.com.

Invited participants may ask questions during the conference call. Others may submit questions before the call by e-mail addressed to [email protected] or by fax to (858) 646-1150. Submitted questions will be screened for appropriateness and general interest. Selected questions received with sufficient notice before the call will be answered as time permits at the end of the call. For further information, contact Vical’s Investor Relations department by phone at (858) 646-1127 or by email at [email protected].

Further MP0250 clinical data and partner interest underline Molecular Partners’ continued progress of its proprietary oncology compounds

On April 26, 2018 Molecular Partners AG (SIX: MOLN), a clinical-stage biopharmaceutical company developing a new class of drugs known as DARPin therapies*, reported its Interim Management Statement for the period ending March 31, 2018 (Press release, Molecular Partners, APR 26, 2018, View Source [SID1234525713]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"We are very pleased with the progress of our pipeline during the first quarter of 2018," said Dr. Patrick Amstutz, Chief Executive Officer of Molecular Partners. "Since the beginning of the year, we presented promising clinical data on additional patients treated with our lead oncology asset, MP0250, in Multiple Myeloma. Moreover, we have entered into a collaboration with AstraZeneca for our second phase 2 study of MP0250 in EGFR-mutated Non-Small Cell Lung Cancer and expect to dose the first patient in the coming weeks. Finally, our existing partner, Allergan, has exercised all three options from our discovery alliance agreement manifesting our mutual conviction in the potential of our DARPin technology in ophthalmology as well as of the success of our joint collaboration."

Additional data reconfirm promising progress of phase 2 study of MP0250 in Multiple Myeloma
MP0250, Molecular Partners’ lead oncology asset, is a phase 2 multi-DARPin candidate that simultaneously targets hepatocyte growth factor (HGF) and vascular endothelial growth factor (VEGF), two prominent tumor escape pathways, and has the potential to reverse resistance to standard of care cancer therapies.

The phase 2 study for this compound is being conducted at centers in Germany, Poland and Italy and continues to progress well. This study is evaluating MP0250 in combination with bortezomib (Velcade) and dexamethasone in patients with multiple myeloma who have failed standard therapies.

The company anticipates further safety data and initial efficacy data before year-end 2018.

AstraZeneca agreed to collaborate in second phase 2 study of MP0250 in Non-Small Cell Lung Cancer (NSCLC) by supplying osimertinib (Tagrisso)
Molecular Partners is collaborating with AstraZeneca (LON: AZN) for its phase 1b/2 clinical study of MP0250 in combination with osimertinib (Tagrisso) in patients with EGFR-mutated Non-Small Cell Lung Cancer (NSCLC) who were pre-treated with osimertinib. Under the collaboration agreement, AstraZeneca will supply osimertinib for the clinical study. The study is planned to enroll approximately 40 patients and will take place in the United States. The first patient is expected to be dosed in the coming weeks. Initial safety data are expected by the end of 2018 with initial efficacy data in 2019.

"We are delighted to welcome AstraZeneca as collaboration partner for our second phase 2 study of MP0250. This underlines the growing interest in MP0250 and indicates the potential value of MP0250 in EGFR-mutated NSCLC," said Dr. Andreas Harstrick, Chief Medical Officer Molecular Partners.

Immuno-oncology: Pre-clinical data on the company’s DARPin "toolbox" and on MP0310
At the Annual Meeting 2018 of the American Association of Cancer Research (AACR) (Free AACR Whitepaper) in Chicago, Molecular Partners presented new pre-clinical data on MP0310 as well as its DARPin "toolbox". MP0310 targets simultaneously 4-1BB and FAP and is the first of many potential DARPin candidates which has been advanced into preclinical development. These tumor-restricted agonists only activate immune cells in the tumor and not in the rest of the body thereby allowing full activation and potentially higher dosing of the anti-cancer agents without as severe side effects.

"We are very pleased with the progress of our portfolio showcasing the innovative power of the DARPin technology in the multi-specific biologics space," commented Michael T. Stumpp, Chief Scientific Officer Molecular Partners. "With MP0310 and other potential candidates from our DARPin toolbox, we are moving forward therapies that have the potential to support existing therapies and provide significant additional patient benefits."

Ophthalmology: Allergan exercised third option for the development of three additional DARPin product candidates
In February, the company’s collaboration partner, Allergan, exercised its third option to develop and commercialize DARPin product candidates arising from its discovery alliance with Molecular Partners. In 2012, Molecular Partners and Allergan had entered into a broad discovery alliance in ophthalmology to spur the development of novel multi-DARPin molecules for diseases with high unmet medical need. Upon the exercise of this last option, Molecular Partners has granted Allergan an exclusive license to the selected three multi-DARPin product candidates for use in ophthalmology.

The alliance broadens the initial collaboration on abicipar and entitles Molecular Partners to certain success-based development, regulatory and sales milestone payments aggregating up to USD 960 million, as well as tiered royalty payments (up to the low double-digit percentage range) on any future product sales. Allergan will be responsible for all future development costs.

Abicipar on track for one-year phase 3 efficacy data in H2 2018
Molecular Partners anticipates that its collaboration partner Allergan will present one-year phase 3 topline data for abicipar in wet age-related macular degeneration (wet AMD) in H2 2018. The company further expects Allergan to communicate the start of the phase 3 studies of abicipar in diabetic macular edema (DME) in H2 2018.

Balance Sheet: Strong cash and equity positions as of March 31, 2018
Molecular Partners’ financial performance for the first quarter 2018 is in-line with management’s expectations and reflects ongoing investments to further expand the company’s proprietary pipeline. Cash and short-term deposits decreased by CHF 11.5 million since year-end 2017 to CHF 129.5 million as of March 31, 2018.

As a result of the adoption of IFRS 15, deferred revenues as of December 31, 2017 of CHF 18.4 million were partly reclassified to equity (CHF 8.9 million) to reflect the accumulated past effect of the adoption as of January 1, 2018. The remaining portion of CHF 9.5 million was recognized as revenues in the first quarter 2018.

As of March 31, 2018, the company employed 113 FTEs (+11% year-over-year), with approximately 90% of employees serving in R&D functions.

"During the first quarter 2018, Molecular Partners’ financial position continued to develop in line with our expectations," said Andreas Emmenegger, Chief Financial Officer Molecular Partners. "Our strong cash position provides us with the required financial flexibility to achieve multiple value-creating inflection points into 2020."

Bill Burns elected Chairman at the 2018 Annual General Meeting
William (Bill) Burns, former CEO of Roche Pharmaceuticals, was elected as Chairman of Molecular Partners at the company’s Annual General Meeting held on April 18. Bill Burns held various executive positions at Roche for 28 years, culminating in his nomination to the position of CEO of Roche Pharmaceuticals and board seats at Roche, Genentech and Chugai Pharmaceuticals. The company will benefit from his vast experience in the development and commercialization of drugs, particularly in oncology, and extensive knowledge of pharmaceutical industry operations.

All other motions recommended by the company’s Board of Directors were approved as well by the shareholders present at the meeting.

Business outlook and priorities
For the company’s proprietary oncology pipeline, the company expects to report in 2018 additional safety data and initial efficacy data from the phase 2 study of MP0250 in patients with multiple myeloma (MM). Subject to the expected dosing of the first patient in the coming weeks, the company also expects initial safety data from the phase 1b/2 study of MP0250 in NSCLC in 2018. For MP0274, the proprietary, single-pathway DARPin drug candidate for the treatment of HER2-positive cancer, Molecular Partners expects initial safety data in Q4 2018 and first efficacy data in 2019.

The company will continue to advance its immuno-oncology pipeline and will present further research and preclinical data for its DARPin candidate MP0310 in 2018. In this promising field, Molecular Partners is increasing its focus on activating agonists in a tumor-restricted way.

In ophthalmology, Molecular Partners will continue to support its strategic partner Allergan in advancing abicipar through phase 3 studies in patients with wet AMD and in initiating the phase 3 studies of abicipar in patients with DME. The company will also continue to support Allergan in further advancing the three pre-clinical ophthalmology assets optioned-in from the existing research collaboration. Allergan is on track to present one-year phase 3 topline data in wet AMD in H2 2018 and anticipates launching abicipar for this indication in the year 2020.

Financial outlook 2018
For the full year 2018, at constant exchange rates, the company continues to expect expenses of CHF 50-60 million, of which around CHF 7 million will be non-cash effective costs for share-based payments, IFRS pension accounting and depreciations. However, this guidance is subject to the progress of the pipeline, mainly driven by manufacturing costs, the speed of enrollment of patients in clinical studies and data from research and development projects.

No guidance can be provided with regard to net cash flow projections. Timelines and potential milestone payments from existing and potentially new partnerships are not disclosed.

*DARPin is a registered trademark owned by Molecular Partners AG.

Financial Calendar
August 30, 2018 – Publication of 2018 Half-year Results
November 01, 2018 – Q3 2018 Management Statement
View Source

About the DARPin Difference
DARPin therapeutics are a new class of protein therapeutics opening an extra dimension of multi-specificity and multi-functionality. DARPin candidates are potent, specific, safe and very versatile. They can engage in more than 5 targets at once, offering potential benefits over those offered by conventional monoclonal antibodies or other currently available protein therapeutics. The DARPin technology is a fast and cost-effective drug discovery engine, producing drug candidates with ideal properties for development and very high production yields.
With their good safety profile, low immunogenicity and long half-life in the bloodstream and the eye, DARPin therapies have the potential to advance modern medicine and significantly improve the treatment of serious diseases, including cancer and sight-threatening disorders. Molecular Partners is partnering with Allergan to advance clinical programs in ophthalmology, and is advancing a proprietary pipeline of DARPin drug candidates in oncology. The most advanced global product candidate is abicipar, a molecule currently in Phase 3, in partnership with Allergan.
Several DARPin molecules for various ophthalmic indications are also in development. The most advanced systemic DARPin molecule, MP0250, is in Phase 1 clinical development for the treatment of solid tumors and in Phase 2 development for hematological tumors. In addition, Molecular Partners intends to further evaluate MP0250 for solid tumors in a phase 1b/2 trial for EGFR-mutated NSCLC. MP0274, the second-most advanced DARPin drug candidate in oncology, has broad anti-HER activity; it inhibits HER1, HER2 and HER3-mediated downstream signaling via Her2, leading to induction of apoptosis. MP0274 has moved into Phase 1. Molecular Partners is also advancing a growing preclinical pipeline that features several immuno-oncological development programs. DARPin is a registered trademark owned by Molecular Partners AG..

"We are very pleased with the progress of our pipeline during the first quarter of 2018," said Dr. Patrick Amstutz, Chief Executive Officer of Molecular Partners. "Since the beginning of the year, we presented promising clinical data on additional patients treated with our lead oncology asset, MP0250, in Multiple Myeloma. Moreover, we have entered into a collaboration with AstraZeneca for our second phase 2 study of MP0250 in EGFR-mutated Non-Small Cell Lung Cancer and expect to dose the first patient in the coming weeks. Finally, our existing partner, Allergan, has exercised all three options from our discovery alliance agreement manifesting our mutual conviction in the potential of our DARPin technology in ophthalmology as well as of the success of our joint collaboration."

Additional data reconfirm promising progress of phase 2 study of MP0250 in Multiple Myeloma
MP0250, Molecular Partners’ lead oncology asset, is a phase 2 multi-DARPin candidate that simultaneously targets hepatocyte growth factor (HGF) and vascular endothelial growth factor (VEGF), two prominent tumor escape pathways, and has the potential to reverse resistance to standard of care cancer therapies.

The phase 2 study for this compound is being conducted at centers in Germany, Poland and Italy and continues to progress well. This study is evaluating MP0250 in combination with bortezomib (Velcade) and dexamethasone in patients with multiple myeloma who have failed standard therapies.

The company anticipates further safety data and initial efficacy data before year-end 2018.

AstraZeneca agreed to collaborate in second phase 2 study of MP0250 in Non-Small Cell Lung Cancer (NSCLC) by supplying osimertinib (Tagrisso)
Molecular Partners is collaborating with AstraZeneca (LON: AZN) for its phase 1b/2 clinical study of MP0250 in combination with osimertinib (Tagrisso) in patients with EGFR-mutated Non-Small Cell Lung Cancer (NSCLC) who were pre-treated with osimertinib. Under the collaboration agreement, AstraZeneca will supply osimertinib for the clinical study. The study is planned to enroll approximately 40 patients and will take place in the United States. The first patient is expected to be dosed in the coming weeks. Initial safety data are expected by the end of 2018 with initial efficacy data in 2019.

"We are delighted to welcome AstraZeneca as collaboration partner for our second phase 2 study of MP0250. This underlines the growing interest in MP0250 and indicates the potential value of MP0250 in EGFR-mutated NSCLC," said Dr. Andreas Harstrick, Chief Medical Officer Molecular Partners.

Immuno-oncology: Pre-clinical data on the company’s DARPin "toolbox" and on MP0310
At the Annual Meeting 2018 of the American Association of Cancer Research (AACR) (Free AACR Whitepaper) in Chicago, Molecular Partners presented new pre-clinical data on MP0310 as well as its DARPin "toolbox". MP0310 targets simultaneously 4-1BB and FAP and is the first of many potential DARPin candidates which has been advanced into preclinical development. These tumor-restricted agonists only activate immune cells in the tumor and not in the rest of the body thereby allowing full activation and potentially higher dosing of the anti-cancer agents without as severe side effects.

"We are very pleased with the progress of our portfolio showcasing the innovative power of the DARPin technology in the multi-specific biologics space," commented Michael T. Stumpp, Chief Scientific Officer Molecular Partners. "With MP0310 and other potential candidates from our DARPin toolbox, we are moving forward therapies that have the potential to support existing therapies and provide significant additional patient benefits."

Ophthalmology: Allergan exercised third option for the development of three additional DARPin product candidates
In February, the company’s collaboration partner, Allergan, exercised its third option to develop and commercialize DARPin product candidates arising from its discovery alliance with Molecular Partners. In 2012, Molecular Partners and Allergan had entered into a broad discovery alliance in ophthalmology to spur the development of novel multi-DARPin molecules for diseases with high unmet medical need. Upon the exercise of this last option, Molecular Partners has granted Allergan an exclusive license to the selected three multi-DARPin product candidates for use in ophthalmology.

The alliance broadens the initial collaboration on abicipar and entitles Molecular Partners to certain success-based development, regulatory and sales milestone payments aggregating up to USD 960 million, as well as tiered royalty payments (up to the low double-digit percentage range) on any future product sales. Allergan will be responsible for all future development costs.

Abicipar on track for one-year phase 3 efficacy data in H2 2018
Molecular Partners anticipates that its collaboration partner Allergan will present one-year phase 3 topline data for abicipar in wet age-related macular degeneration (wet AMD) in H2 2018. The company further expects Allergan to communicate the start of the phase 3 studies of abicipar in diabetic macular edema (DME) in H2 2018.

Balance Sheet: Strong cash and equity positions as of March 31, 2018
Molecular Partners’ financial performance for the first quarter 2018 is in-line with management’s expectations and reflects ongoing investments to further expand the company’s proprietary pipeline. Cash and short-term deposits decreased by CHF 11.5 million since year-end 2017 to CHF 129.5 million as of March 31, 2018.

As a result of the adoption of IFRS 15, deferred revenues as of December 31, 2017 of CHF 18.4 million were partly reclassified to equity (CHF 8.9 million) to reflect the accumulated past effect of the adoption as of January 1, 2018. The remaining portion of CHF 9.5 million was recognized as revenues in the first quarter 2018.

As of March 31, 2018, the company employed 113 FTEs (+11% year-over-year), with approximately 90% of employees serving in R&D functions.

"During the first quarter 2018, Molecular Partners’ financial position continued to develop in line with our expectations," said Andreas Emmenegger, Chief Financial Officer Molecular Partners. "Our strong cash position provides us with the required financial flexibility to achieve multiple value-creating inflection points into 2020."

Bill Burns elected Chairman at the 2018 Annual General Meeting
William (Bill) Burns, former CEO of Roche Pharmaceuticals, was elected as Chairman of Molecular Partners at the company’s Annual General Meeting held on April 18. Bill Burns held various executive positions at Roche for 28 years, culminating in his nomination to the position of CEO of Roche Pharmaceuticals and board seats at Roche, Genentech and Chugai Pharmaceuticals. The company will benefit from his vast experience in the development and commercialization of drugs, particularly in oncology, and extensive knowledge of pharmaceutical industry operations.

All other motions recommended by the company’s Board of Directors were approved as well by the shareholders present at the meeting.

Business outlook and priorities
For the company’s proprietary oncology pipeline, the company expects to report in 2018 additional safety data and initial efficacy data from the phase 2 study of MP0250 in patients with multiple myeloma (MM). Subject to the expected dosing of the first patient in the coming weeks, the company also expects initial safety data from the phase 1b/2 study of MP0250 in NSCLC in 2018. For MP0274, the proprietary, single-pathway DARPin drug candidate for the treatment of HER2-positive cancer, Molecular Partners expects initial safety data in Q4 2018 and first efficacy data in 2019.

The company will continue to advance its immuno-oncology pipeline and will present further research and preclinical data for its DARPin candidate MP0310 in 2018. In this promising field, Molecular Partners is increasing its focus on activating agonists in a tumor-restricted way.

In ophthalmology, Molecular Partners will continue to support its strategic partner Allergan in advancing abicipar through phase 3 studies in patients with wet AMD and in initiating the phase 3 studies of abicipar in patients with DME. The company will also continue to support Allergan in further advancing the three pre-clinical ophthalmology assets optioned-in from the existing research collaboration. Allergan is on track to present one-year phase 3 topline data in wet AMD in H2 2018 and anticipates launching abicipar for this indication in the year 2020.

Financial outlook 2018
For the full year 2018, at constant exchange rates, the company continues to expect expenses of CHF 50-60 million, of which around CHF 7 million will be non-cash effective costs for share-based payments, IFRS pension accounting and depreciations. However, this guidance is subject to the progress of the pipeline, mainly driven by manufacturing costs, the speed of enrollment of patients in clinical studies and data from research and development projects.

No guidance can be provided with regard to net cash flow projections. Timelines and potential milestone payments from existing and potentially new partnerships are not disclosed.

*DARPin is a registered trademark owned by Molecular Partners AG.

Financial Calendar
August 30, 2018 – Publication of 2018 Half-year Results
November 01, 2018 – Q3 2018 Management Statement
View Source

About the DARPin Difference
DARPin therapeutics are a new class of protein therapeutics opening an extra dimension of multi-specificity and multi-functionality. DARPin candidates are potent, specific, safe and very versatile. They can engage in more than 5 targets at once, offering potential benefits over those offered by conventional monoclonal antibodies or other currently available protein therapeutics. The DARPin technology is a fast and cost-effective drug discovery engine, producing drug candidates with ideal properties for development and very high production yields.
With their good safety profile, low immunogenicity and long half-life in the bloodstream and the eye, DARPin therapies have the potential to advance modern medicine and significantly improve the treatment of serious diseases, including cancer and sight-threatening disorders. Molecular Partners is partnering with Allergan to advance clinical programs in ophthalmology, and is advancing a proprietary pipeline of DARPin drug candidates in oncology. The most advanced global product candidate is abicipar, a molecule currently in Phase 3, in partnership with Allergan.
Several DARPin molecules for various ophthalmic indications are also in development. The most advanced systemic DARPin molecule, MP0250, is in Phase 1 clinical development for the treatment of solid tumors and in Phase 2 development for hematological tumors. In addition, Molecular Partners intends to further evaluate MP0250 for solid tumors in a phase 1b/2 trial for EGFR-mutated NSCLC. MP0274, the second-most advanced DARPin drug candidate in oncology, has broad anti-HER activity; it inhibits HER1, HER2 and HER3-mediated downstream signaling via Her2, leading to induction of apoptosis. MP0274 has moved into Phase 1. Molecular Partners is also advancing a growing preclinical pipeline that features several immuno-oncological development programs. DARPin is a registered trademark owned by Molecular Partners AG.

Cologuard® revenue and completed tests increased 87 percent to $90.3 million and 186,000

On April 26, 2018 Exact Sciences Corp. (Nasdaq: EXAS) reported that the company generated revenue of $90.3 million and completed approximately 186,000 Cologuard tests during the quarter ended Mar. 31, 2018 (Press release, Exact Sciences, APR 26, 2018, View Source [SID1234525737]). First-quarter 2018 revenue and Cologuard test volume both grew 87 percent from 2017.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Exact Sciences Corporation Logo (PRNewsfoto/EXACT SCIENCES CORP)
"The Exact Sciences team delivered strong growth to start the year by remaining relentlessly focused on our core priorities. By increasing awareness and adoption of Cologuard, we are making strides toward our mission of playing a role in the eradication of colon cancer," said Kevin Conroy, chairman and CEO of Exact Sciences. "The success of Cologuard also positions us to develop tests that facilitate the early, accurate detection of other forms of cancer."

First-Quarter 2018 Financial Results

For the three-month period ended Mar. 31, 2018, as compared to the same period of 2017 (where applicable):

Revenue was $90.3 million, an increase of 87 percent, and test volume was 186,000, an increase of 87 percent
Average recognized revenue per test was unchanged at $485; note that the prior period included approximately $4.3 million, or $43 per test, related to the one-time impact of certain payers meeting the company’s revenue recognition criteria for accrual-basis revenue accounting
Average cost per test was $123, an improvement of 28 percent
Gross margin was 75 percent, an increase of 970 basis points
Operating expenses were $103.9 million, an increase of 55 percent
Net loss was $39.4 million or $0.33 per share, compared to $34.9 million or $0.32 per share
Non-cash interest expense related to convertible debt was $5.1 million, or $0.04 per share
Cash utilization was $53.7 million, compared to $36.4 million
Cash, cash equivalents and marketable securities were $1.0 billion at the end of the quarter
Nearly 9,000 healthcare providers ordered their first Cologuard test during the first quarter, and 110,000 (rounded) have ordered since the test was launched
2018 Outlook

The company continues to anticipate revenue of $420-$430 million and completed Cologuard test volume of 900,000-920,000 tests during 2018
For the second quarter, the company anticipates completing 220,000-230,000 Cologuard tests
The company’s guidance for revenue and completed tests are forward-looking statements. They are subject to various risks and uncertainties that could cause the company’s actual results to differ materially from the anticipated targets. There can be no assurance the company will meet these financial projections. See the cautionary information about forward-looking statements in the "Safe Harbor Statement" section of this press release.

First-Quarter Conference Call & Webcast

Company management will host a conference call and webcast on Thursday, Apr. 26, 2018, at 5 p.m. ET to discuss first-quarter 2018 results. The webcast will be available at www.exactsciences.com. Domestic callers should dial 877-201-0168 and international callers should dial +1-647-788-4901.

An archive of the webcast will be available at www.exactsciences.com. A replay of the conference call will be available by calling 800-585-8367 domestically or 416-621-4642 internationally. The access code for the replay of the call is 8289286. The webcast, conference call and replay are open to all interested parties.

About Cologuard

Cologuard was approved by the FDA in August 2014 and results from Exact Sciences’ prospective 90-site, point-in-time, 10,000-patient pivotal trial were published in the New England Journal of Medicine in March 2014. Cologuard is included in the American Cancer Society’s (2014) colorectal cancer screening guidelines and the recommendations of the U.S. Preventive Services Task Force (2016) and National Comprehensive Cancer Network (2016). Cologuard is indicated to screen adults of either sex, 50 years or older, who are at average risk for colorectal cancer. Cologuard is not for everyone and is not a replacement for diagnostic colonoscopy or surveillance colonoscopy in high-risk individuals. False positives and false negatives do occur. Any positive test result should be followed by a diagnostic colonoscopy. Following a negative result, patients should continue participating in a screening program at an interval and with a method appropriate for the individual patient. Cologuard performance when used for repeat testing has not been evaluated or established. For more information about Cologuard, visit www.cologuardtest.com. Rx Only.